Agricultural marketing

3. Creation of Employment: The transport function provides emp loyment to a 
large number of persons through the construction of roads, loading and unloading, 
plying of the means of transportation, etc. 
4. Facilitation of Specialized Farming: Different areas of the country are suitable 
for different crops, depending on their soil and agroclimatic conditions. Farmers 
can go in for specialization in the commodity most suitable to their area, and 
exchange the goods required by them from other areas at a cheaper price than 
their own production cost. 
5. Transformation of the Economy: Transportation helps in the transformation of 
the economy from the subsistence stage to the developed commercial stage.
Industrial growth is stimulated by being fed with the raw material produced in 
rural areas. Manufactured goods from industries to village or rural areas, too, can 
be moved. 
6. Mobility of the Factors of Production: Transport helps in increasing the 
mobility of capital and labour from one area to another. Entrepreneurs get 
opportunities for the investment of their capital in newly opened areas of the 
country, where the prospects of profit are very bright. Moreover, transportation 
helps in the migration of people in search of better remunerative jobs. 
 
Transportation Cost: 
The transportation cost accounts for about 50 percent of the total cost of marketing. It is 
higher when the produce is transported by bullock carts than when it is carried by other 
means. The efficiency of transportation depends on the speed and the care with which 
goods move from one place to another, the extent of the facilities provided, and the 

---

degree of care with which goods are handled en route and at terminal stations. However, 
there is a need for reducing the cost of transportation.